By Simeon Shodimu
Smallholder farming activities characterize most farming operations in Nigeria, and a major impediment associated with these farmers is funding. To improve their activities and boost agricultural production, the African Export-Import Bank (Afreximbank) and Nigeria’s Bank of Agriculture (BOA) have signed a $1 billion agreement aimed at supporting smallholder farmers across the country.
The deal was announced at the 4th Intra-African Trade Fair (IATF) in Algiers, Algeria, organised by Afreximbank, the African Union Commission, and the African Continental Free Trade Area (AfCFTA) Secretariat.
The agreement was signed by Ayo Sotinrin, CEO of the Bank of Agriculture, and Kanayo Awani, executive vice president, Intra-African Trade Bank at Afreximbank.
The $1 billion facility will be used to develop a National Smallholder Farmers’ Fund, aimed at bridging critical financing gaps faced by smallholder farmers, who constitute about 95 people of Nigeria’s agricultural value chain.
Through this partnership, both institutions will provide blended finance solutions to enable smallholder farmers to access affordable credit for inputs, mechanization, processing, and market linkages. The initiative is expected to significantly boost productivity, enhance food security, and drive value addition in the agricultural sector.
Also at the trade fair, Afreximbank also signed a $210 million facility agreement with the Zimbabwe Electricity Transmission and Distribution Company (ZETDC). The deal will support ZETDC in securing a dual-tranche trade loan aimed at improving power supply and reducing electricity deficits in Zimbabwe. Stable electricity is expected to drive growth in key sectors such as mining, manufacturing, and agriculture, ultimately strengthening the country’s economic performance and regional trade capacity.
Both deals underscore Afreximbank’s ongoing commitment to driving development and trade integration across the continent.
